Global oil demand growth is projected to increase by less than 1 percent as demand falls in advanced economies but rises in the developing world. Lackluster demand and increases in non-OPEC supply, largely from North America, indicate softer pricing and a challenge for OPEC to manage its production and maintain supply and demand balance.
Growing non-OPEC production is now impacting global supply and demand dynamics. With major consuming countries like the US relying more on ‘home-grown fuels,’ exports are being shifted to new destinations. This creates new trade alliances and relationships.
Despite the higher US natural gas prices, regional price differences are substantial – highlighting the opportunity to ship US natural gas to advantageous markets.
Access to new gas supplies from planned LNG projects in the Eastern Mediterranean, Eastern Africa, US and Canada will create greater pricing balance and impact the economics of many proposed LNG projects.